Iran to blame for price hike. Steinitz
צילום: עושים צילום
Steinitz: Electricity price hike caused by Iran sanctions
Finance minister defends soaring electricity rates, says 'We are paying a certain price for tightening sanctions on Iran, just like England, Spain and Greece'
Finance Minister Yuval Steinitz cited the tension with Iran as the reason behind the latest increase in electricity rates. "We are paying a certain price for tightening sanctions on Iran," he explained during a interview with Israel Radio.
"No one likes price hikes, it's not pleasant nor desired," said Steinitz, adding that the government " managed to moderate the price increase, which was also caused by the discontinuation of gas supply from Egypt and the use of fuels that are four of five times more expensive than gas."
The Finance minister added that the price hike was expected to be even "more dramatic," but that the ministry waved tax revenues in order to decrease the taxes on fuels from Israel Electric Corp, which helped limit the rising cost," he said.
However, Steinitz noted that "in the end of the day Israel is part of the world, and when oil prices go up because of the sanctions and embargo on Iran – which Israel is pushing to tighten – then we pay a certain price, just like Spain, England, Italy, Sweden, Germany and Greece.
"This hurts everyone, including Israeli citizens," he said, noting that the Consumer Price Index increased in a relatively moderate way, so that "alongside certain price hikes there are also reductions in certain items."
According to the Israel Electric Corp., the reason behind the price surge is a 15% increase in the cost of electricity for the private customers, as well as the cold weather. Electricity demand this winter reached a peak of 11,100 megawatts on January 22, setting an all time record.
Meanwhile on Tuesday, Member of Knesset Uri Maklev (United Torah Judaism) presented a bill by which the Knesset will be in charge of supervising electricity prices.
"Electricity is a crucial commodity for every person in Israel and it is ought to be supervised by the Knesset's Finance Committee," he wrote in the proposal presented to Knesset.
